Forex Trading: GBPJPY Technical Analysis – March 02, 2020
Great Britain Pound (GBP) luckily inched higher against the Japanese Yen (JPY) on this new month morning with a price of more than 138.00 after the awful fall of the last trading day of February. No doubt the last drop hit the GBPJPY’s smooth ride very poorly, but hopefully, March’s upcoming news will help the pair regain their lost position. If we’re talking specifically about the growth of today, it might be because of Japan’s increased unemployment rate. Yet, as long as the technical bias is considered then because of the higher low wave in the last upside move of the graph, it might remain bearish.
GBP/JPY: Technical Analysis
Today’s morning the GBPJPY priced at 138.51 on the graph. However, it is unfortunate for the price of the pair that it carried the number of resistance along with its terrible fall which creates the problem for the pair in order to strengthen its price against these resistances. At 139.74, it has the first 38.2% Fib level resistance, ahead of the 141.04, the resistance of the trendline and then the major horizontal resistance might affect the price at 147.91.
Yet, the price has a backed-up power in the shape of the support levels that definitely help it in raising the price up to the optimal level, the immediate major horizontal support assisted the price at 137.02, afterward the Fibonacci level of 134.77, and then the trendline support assisted the price at 127.44.
JPY Unemployment Rate
The unemployment rate from the Ministry of Health, Labor and Welfare, released by the Japan Statistics Bureau, increased significantly this month from 2.2 percent to 2.4 percent, a measure of the number of unemployed people in Japan. A high percentage points to labor market instability that influences the intensity and course of the Japanese economy.
At this point, making the right decision becomes quite difficult as the pair’s suddenly fell but holding stock could be a good option for stakeholders and wait for the GBPJPY’s next positive move, as it has the tendency to cover its loss early.